Looks like some folks have figured it out. This method will allow you to restore your iphone to 1.0.2 with the correct IMEI #. What does this mean? It means you can restore your 1.0.2 unlocked iPhone then upgrade to 1.1.1 and unlock.

The folks that came up with this are gray who figured out how to reverse the iphone crypto, geohot whos server is being used for this, guest184 for fixing gloader, and The Dev Team for the iUnlock Program

Yeah, this is good news. I am also on 1.0.2 and waiting patiently for the proven method. After reading page after page after page on a couple of forums, this method appears to be the real deal. Which, for me, would mean being able to go to 1.1.1 and still remain free of the Evil Empire and use my T-Mobile SIM.

After reading the step-by-step thoroughly, again on multiple forums, the difference between the published Windows version of the how-to and the forthcoming Mac variant is really just the applications used to access the iPhone... SCP vs. WinSCP or CyberDuck vs. something else. I may be trying this sometime tomorrow, after reading more success stories (and, perhaps, giving Cash and the MMI team time to publish a confirmed-How-To of their own.)

So I did this all then upgrading via itunes (im using a pc) and now i get a jailed i phone saying
Incorrect SIM
Insert an unlocked and valid SIM to activate iPhone.

Pleaasseee help!

Zach

Did u just run this tool, and went on to directly update with itunes???

LOL, I really hope you didnt do that.

After running the tool, you have to prep your 1.0.2 in order to jailbreak 1.1.1. Best way to do this is independence 1.2.4. If you did upgrade to 1.1.1 without the pre-requisites you will have to downgrade to 1.0.2 then prep it for 1.1.1 jailbreak, the upgrade to 1.1.1.

All this can be found in independence help section.
But I hope you have a mac, as far as I know independence is mac only...

If you did update to 1.1.1 without the required steps, you now have a jailed 1.1.1 that cannot be jailbroken...Well, good luck man. This is what happens when directions are not read and patience is forgotten.

I can confirm this is tested and working perfectly....I did it last night!
I now have a previously unlocked 1.0.2, virginized, upgraded to 1.1.1, unlocked using anysim 1.1, and working perfectly with my UK T-Mobile SIM. Did it all on OSX apart from firing up parallels to use the geoloader prog.

i did this a few hours ago. it works! i used cyberduck, terminal, and fusion for windows xp (necessary evil) =P. a quick tip - have safari/firefox ready to download your imei.bin file. also, be sure to remove the dns before updating. fyi, at the end of the tutorial, you'll have an unlocked 1.02 but will survive an update =).